Purchasing Manager's Index - Services March 2016
Services PMI fell to 54.9 in March: Robust service activity
- The purchasing managers’ index for the service sector (Services PMI) fell from 55.8 to 54.9 in March. The decline was driven by lower growth rates for orders and employment, while the sub-indices for business volumes and suppliers’ delivery times contributed somewhat positively to the main index. For the first time this year all the components were in the growth zone, though the price index continues to trend lower.
- The sub-index for new orders fell by two points, from 56.6 in February to 54.6 in March, contributing negatively to the Services PMI by 0.7 points. The index for order backlogs managed to stay in the growth zone with a reading of 50.2 for March, compared with 50.0 in February.
- The sub-index for business volumes/production rose in March from 56.4 to 56.7. The fact that the three-month moving average has continued to fluctuate around 60 suggests solid production growth in the service sector. This is reaffirmed by purchasing managers’ production plans, which have been expansive since 2013. The index for planned business volumes reached 64.7 in March, up 1.3 points from February.
- Although employment continued to rise in March, the sub-index fell by 1.7 points, from 55.4 to 53.7. A three-month moving average indicates an increase during the first quarter of the year, however, compared with the second half of 2015.
PMI Services March 2016